[ Question time: Keith Smith ]
have 13 leading industry and associated bodies signed up to the charter, including the ECA. The charter represents the collective commitment by these 13 bodies to work together to raise awareness and take actions to counter the threat from both counterfeit and non-compliant products. We also work together in terms of surveillance and sharing intelligence, and then raising awareness around our mutual customer base of the dangers associated with both counterfeit and non-compliant products.
ECA T
oday: What is the cost and impact of counterfeit electrical products on the UK industry? Keith Smith: The answer is that no-one really knows what the true cost of counterfeit and non-compliant products is, but there are statistics to suggest that the cost to the UK of counterfeit electrical products could easily be £30 million. Over and above this £30 million that could be sold onto the market, there is also the lost revenues to legitimate manufacturers and their distributors – and, of course, jobs lost to the UK industry.
The costs associated with the risks of fire, personal
injury and death are incalculable, however – the consequences, in terms of liability, could cost one’s business and personal freedom.
ECA T
oday: How does BEAMA work with the authorities to conduct a counterfeit raid? Keith Smith: We operate a cradle-to-grave process – gathering intelligence in the marketplace, tracing it back to where the product is being made, and then working with the law enforcement bodies to take direct action to confiscate any infringing materials. We then follow through even further to check that the seized materials are destroyed and what penalties are being handed out to the perpetrator of the crime.
ECA T oday: What actually happens during a raid?
Keith Smith: Bear in mind there is a lot of intelligence gathered and a lot of undercover work before a raid takes place. For example, there is a very large indoor trading market in Yiwu, China, with more than 40,000 stalls trading in everything from consumer luxury goods to trade products, including electrical installation products. We visit this market with member experts of our association to inspect stalls, looking for member brands. After that, we meet with the local law enforcement team to advise them on which stands we identified infringing products. The following day, our team is accompanied as the law enforcement staff lead a raid on the market. All offending materials are then physically taken off the stand. Additional intelligence gathered leads us to the manufacturing locations, where the people working inside the factories are usually extremely cooperative because very often they do not know that they are doing anything wrong. They are pure pawns in this game. It’s only the owner who knows what is going on, and invariably he is not there. The local law enforcement bodies then go through all the products and the documentations. With little-or-no regard for the health and safety of the workers, these factories are usually in back streets, are unlicensed and reflect the absolute extremes of dangerous working conditions.
The law enforcement authorities are extremely co- operative when we supply them with intelligence about a counterfeit operation – they are both swift and strong in the action that they take. Many of these factories are operating as unlicensed factories, which means that they are not paying the appropriate local taxes, so the government will come down hard on them. We continue to assist them in training and support, in the hope that they will be proactive in this process in the future.
ECA T oday: What happens to the counterfeit products
after they have been seized? Keith Smith: The law enforcement team takes the infringing products back to a secure compound, giving the owner a period of time to appeal against the seizure. Invariably, they don’t appeal and the owner is fined a relatively small amount – there lies part of the problem not having a sufficient deterrent to discourage this activity. After a period of time, the products are destroyed – often crushed at a depot with a heavy roller. Physical destructions very often take place in public to send out a clear message to other potential counterfeiters.
ECA T oday: And how many products have you seized
over the years? Keith Smith: We’ve just surpassed 15 million products being seized and destroyed as part of BEAMA’s project activities. Whilst it’s probably a drop in the ocean against the real size of the problem, it’s 15 million products that could have found their way into our market and could have caused fires and fatalities.
ECA T
oday: What should contractors be doing to protect themselves and customers from counterfeit products? Keith Smith: The ‘Three Ps’ is a good thing to remember. The first P is the ‘person’ – know who you are buying from. The second one is ‘place’ – do you know where you are buying from? And the last one is always a very strong one – ‘price’. We all like a bargain, but in terms of electrical installation products, if the price looks too good to be true, it probably is.
ECA Today: Tell me about the ‘Counterfeit Kills’ website that has just been relaunched? Keith Smith: The Counterfeit Kills website (www.
counterfeit-kills.co.uk) is being revitalised and relaunched in early July. It is an industry initiative being driven by BEAMA and Voltimum, which is also a very proactive member of our Charter. On the website you can find the latest anti-counterfeit news, browse a rogues’ gallery of counterfeit products and raids, and blow the whistle if you are suspicious of electrical counterfeit goods being sold. The newly launched website will be more dynamic in its information sharing, and the 13 signatories of the Industry Charter will all be working together to raise awareness, educate and share with the industry as a whole. There is a lot of incredible work involved in our anti-counterfeit and non-compliance initiatives, and I urge everyone to help us continue the fight. The risks associated with trading, installing or using these products are just not worth it.
July 2012 ECA Today 45
Counterfeits are very often really good externally, but internally it is a totally different picture
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